Journal entry to record the purchase of merchandise



[Q1] The entity purchased merchandise and paid $30,000 in cash.
Prepare a journal entry to record this transaction.

[Journal Entry]

  Debit Credit
Merchandise 30,000  
     Cash   30,000

[Notes]
Debit: Increase in merchandise
Credit: Decrease in cash

[Q2] The entity purchased $30,000 merchandise on account.
Prepare a journal entry to record this transaction.

[Journal Entry]

  Debit Credit
Merchandise 30,000  
     Accounts payable   30,000

[Notes]
Debit: Increase in merchandise
Credit: Increase in accounts payable

 

 

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